Closing the Loop: How International Paper's Circular Recycling Gives Brands an Edge
Manufacturers and sellers of consumer packaged goods are always looking to gain a competitive edge. And it turns out that packaging design and closed-loop circularity can drive consumer preference.
Consumers these days are giving preference to brands with more sustainability credentials, both in how products are made and the way they are packaged. All things being equal, consumers will choose the more sustainable product—rewarding brand owners in the marketplace by buying consumer packaged goods (CPG) that carry greener credentials. And it’s no wonder.
The supply chain—transport, shipping and packaging involved—accounts for more than 90 percent of the environmental impact experienced by most consumer goods companies. To reduce this environmental impact, consumer products firms tap packaging companies like International Paper. Large companies like Walmart and Amazon as well as thousands of smaller companies are looking for ways to associate their brands with sustainable production. This is an arena in which International Paper (IP) packaging products give CPG brand owners an edge, because IP has the resources to design performance capabilities that lower the environmental burden of packaging in a way consumers can easily recognize.
“Every piece of consumer data that comes across the internet suggests the consumer is willing to pay more when asked, theoretically,” said Jim Hines, Retail Marketing Manager for International Paper. “In reality, when push comes to shove, are they really willing to?”
For CPG clients who purchase packaging, he noted, “We can make 100 percent recyclable displays or redesign displays with less material in the first place,” Hines said. “That becomes a value-add.”
Circularity
Closed-Loop Circularity, the sustainability approach that recoups packaging to reduce material use, is core to this approach.
All sustainable packaging incorporates five circularity strategies—refuse, reduce, reuse, recycle, and rot—to maximize sustainability. Packaging made from renewable materials, such as plant-based fibers—cartons, paper, and corrugated cardboard, for instance—is a key ingredient in this mix.
More than 800 million tons of cardboard and paper are disposed of yearly in the U.S. But reusing one ton of fiberboard boxes saves 390 kWh of energy, 46 gallons of oil, and 700 gallons of water. International Paper Recycling is a key player in helping firms along the consumer products goods supply chain achieve better sustainability, with its Sustainability in Motion® program integrated into IP’s many North American mills, recycling plants and hundreds of box plants. All are linked to IP’s packaging design and production capabilities, which allow brand owners to design packaging with an eye on improved sustainability, such as reducing materials use, creating reusable boxes and displays, and offering integrated recycling programs.
One recent example is Colgate-Palmolive, which increased the recyclability of its product packaging. This includes bamboo toothbrushes packaged in recycled cardboard and a new design for plastic toothpaste tubes that can be recycled in ordinary consumer waste streams. Naturally, Colgate wanted the secondary and tertiary toothpaste packaging to carry the brand message, and International Paper developed the materials that made it possible. | See sidebar, “Colgate’s Circular Packaging Project with International Paper”
International Paper team members who execute the research and design of corrugated packaging materials based on market trends noted that leading CPG firms are planning for more sustainable packaging in the immediate future. And by applying the concept of circularity—reusing, reducing, and recycling materials—IP is staying on trend, leading to more sustainable packaging for its clients.
Such sustainable packaging efforts can help brand owners meet goals related to the Circular Economy and also gain operational efficiencies under established schemes such as ISO, Six Sigma, Lean Manufacturing or Zero Waste.
Let’s take a look at how reusing, reducing and recycling strategies from International Paper are crucial for sustainable products.
Colgate’s Circular Packaging Project with International Paper
Since 2017, Colgate-Palmolive has prioritized sustainable packaging, and in 2023 it focused on pulp and paper-based packaging volume. “We strive for no deforestation in our operations and activities,” the company said. Its aim is a “supply chain that maximizes the use of recycled materials and aligns with our no deforestation commitments.” Colgate-Palmolive established a policy that applies to pulp and paper-based materials sourced by all its operations, subsidiaries and joint ventures. The policy requires using:
- Paper-based cartons
- Corrugated materials for shipping
- Paper-based labels
- Corrugated materials used to create displays
For its toothpaste, Colgate developed a plastic tube that is recyclable in conventional waste streams and has made its license available to competitors. Naturally the secondary and tertiary packaging for the tubes would also be recyclable. But Colgate went a step further. Working with International Paper, Colgate created the Circular Box, employing full closed-loop circularity for the tertiary corrugated boxes, as well as sustainability credentials for secondary packaging using virgin fibers. These were drawn from the Forestry Stewardship Council.™
IP, through its ongoing Circular Box project, launched in 2021, matched Colgate-Palmolive’s overall goal to reduce paper and cardboard waste, thus increasing recycling and reuse.
The process begins with a local haulage company collecting paper and cardboard scraps from the nearby Colgate-Palmolive plant. This scrap is then delivered to a local paper mill, which uses it to produce recycled paper reels. International Paper then uses this paper to produce packaging for Colgate, in a completely closed and sustainable circular supply chain.
The award winning Circular Box is made of 100 percent recycled paper, of which 35 percent is reused paper and cardboard waste generated within Colgate-Palmolive’s supply chain.
Reuse of Packaging
Reuse of packaging is the most direct way to reduce the environmental burden of packaging. At the consumer end, refillable jars and bottles help to reduce reliance on disposable containers intended for one-time use. According to The Ellen MacArthur Foundation, “If refillable designs and models were to be applied to all bottles in beauty and personal care as well as home cleaning, packaging and transport savings would represent an 80–85 percent reduction in GHG emissions compared to today’s single-use bottles.” Further up in the supply chain, where goods are transferred for intermediate processing, there are significant opportunities for reusable containers. Reuse of corrugated packaging opens the door to a complete closed-loop process—a scenario in which boxes are returned to their filling location. Opportunities for a closed-loop strategy can be found on assembly lines, pick-and-pack fulfillment centers, agricultural businesses, moving and storage businesses, and even in strategies where corrugated displays are refilled on-site by retailers in stores.
International Paper’s retail display operations specialize in designing, manufacturing and prefilling displays for consumer products firms. IP sees a growing trend in extending the useful life of such corrugated displays, with more durable designs and material—which are still fully recyclable when they have reached the end of their useful life.
For International Paper's material technology scientists team in Federal Way, WA, reusability means for the usable structural life of a display and whether we can get the retailer to replenish the display with products sold to the consumer.
In these cases, International Paper will ship the product in a durable, corrugated display, sometimes replacing non-recyclable permanent displays. For temporary promotions along the way, International Paper prints new header cards and side panels with new graphics, further extending the life of the corrugated display at retail.
This appeals to CPG clients because the longer they can preserve the display space at retail, the more they sell. International Paper also offers other reusable corrugated containers, including gaylords, often used for collecting recycled paper products, stackable SpaceKraft™ containers for holding bulk liquids, and RPC Replacements, which are reusable corrugated bins employed in agriculture and by food packagers and grocers for bulk display and to maximize supply chain efficiency.
Reducing Packaging with Corrugated Materials
A recent report from The Ellen MacArthur Foundation found that design can play an important role in eliminating waste. “By designing for material efficiency, material input can be reduced, while designing for optimized supply chains lowers the amount of energy and materials used.” Designing sustainability into corrugated materials can reduce overall packaging by optimizing sizing, logistics, and reducing overall shipping costs.
In one case, International Paper worked with a CPG firm to cut packaging material required by half, and as a result, twice as many products fit on a truck.
“We see a trend in reducing the amount of material required for those displays,” said International Paper’s Alan Reische, New Business Development Manager for IP's Packaging Solutions North America division. “What you typically see is a reduction in the overall shipping configuration. You get more units on a truck, and in turn you need fewer trucks going out on the roads, optimizing logistics channels.”
International Paper’s collaborative design process, fulfilled in tandem with its clients, opens the door to more sustainable packaging development.
“It’s a synergy between our innovation team and our VAS (Value Added Services) team, who engage with customers in ideation sessions,” Reische said. International Paper’s VAS team operates at three Customer Commitment Center locations— Memphis, Indianapolis, and Aurora, CA—which showcase IP’s vast capabilities for innovative solutions. Customers can see first-hand International Paper’s creative and technical services during meetings with IP experts.
“A lot of the customer packaging development opportunities we get are fairly open-ended,” said Reische. “They are project based. Each program is designed from scratch to meet our customers’ unique needs.”
In addition to VAS, International Paper also offers a packaging auditing service, eBOSTM, in which a team of experts analyze client shipment history and box utilization, then recommend a suite of boxes to match the patterns that emerge.
An eBOS review improves outcomes, such as reducing product damage and enriching the unboxing experience for consumers. eBOS also optimizes materials and logistics, improving warehouse efficiency, cutting freight volume and costs, and reducing the amount of material used for cartons packed to secure goods—all contributing to improved sustainability for CPG shippers.
Recycling Built In
Reclaiming and recycling used paper and old corrugated containers (OCC) generates a sustainable raw material for manufacturing new cartons.
International Paper Recycling is among the world’s largest aggregators of recycled material, contracting with large retailers, grocery chains, manufacturers, and ecommerce warehouses to collect used cardboard and other recyclable materials—many of which IP produced in the first place—and transport them to processing facilities. From there, the recycled fiber goes to paper mills to transform into new boxes and other fiber-based packaging products. International Paper Recycling recovers, processes, buys, or facilitates the sale of 7 million tons of fiber every year, or 12 percent of the entire U.S. market for recycled cardboard. | See white paper, “The Circular Life of a Cardboard Box”
The packaging produced by International Paper for Colgate incorporates circularity— part of IP’s Sustainability in Motion® approach to packaging manufacturing that reclaims used packaging as the source for fiber to make new packaging.
IP strives to maximize the recyclability and functionality of our boxes using reclaimed or recycled fiber with virgin fiber input, which maximizes the strength and life cycle of each box while maintaining its circular design. Each box is made with both recycled and virgin fiber because each time paper fibers are recycled, they become shorter and slightly weaker, which means to maintain box durability, some virgin fiber input is required.
Paper packaging is unique, and at IP we believe the best option is created from a blend of virgin and recycled content.
With 100% recycled content boxes, there can be supply chain constraints, increased
costs and increased GHG emissions. More chemical and fiber must be used to achieve the same box durability as well as 100% recycled mills in the U.S. can generate more carbon dioxide than traditional mills—using a blend of recycled and virgin fibers. We see this in our own footprint and also in the industry-wide Life Cycle Assessment completed by the Fibre Box Association.
IP is the largest procurer, marketer, and consumer of recycled content in the US. Annually we procure and market about 7 million tons, ultimately consuming about 5 million tons in our own production.
Contrary to popular belief, using virgin fiber protects forests because if landowners can have a reliable end-market for their fiber, they will continue to replant forest post-harvest. Purchasing boxes from IP actually protects forests and local economies. IP supports sustainable forest management that works in tandem with its nationwide recycling network to deliver sustainable packaging solutions for CPG firms.
Schedule a consultation with International Paper Recycling to discuss a closed-loop packaging and recycling solution for your brand.
